The Super guarantee charge (SGC) percentage increases from 10.5% to 11% from 1 July. Check your workforce forward budget calculations and adjust your payroll system registers accordingly.
The remaining two increases to reach 12% are 1 July 2024 (11.5%) and 1 July 2025 (12%).
The journey from 3% to 12% actually began way back in 1992 with various steps and pauses along the way.
The SGC applies to “ordinary time earnings”. For a current list of payments that count as ordinary time earnings (OTE) or only as salary and wages, go to:
https://www.ato.gov.au/business/super-for-employers/paying-super-contributions/how-much-super-to-pay/list-of-payments-that-are-ordinary-time-earnings/
For example overtime, expense reimbursements, parental leave, and some termination payments do not count as OTE and SGC does not apply. Unless of course an employment contract, EBA or Award indicates otherwise.
https://www.ato.gov.au/business/super-for-employers/paying-super-contributions/how-much-super-to-pay/list-of-payments-that-are-ordinary-time-earnings/
For example overtime, expense reimbursements, parental leave, and some termination payments do not count as OTE and SGC does not apply. Unless of course an employment contract, EBA or Award indicates otherwise.